W. P. Carey Inc.WPC
W. P. Carey Inc. Goodwill & Intangibles Disclosure
Goodwill and Other Intangibles
We have recorded lease and internal-use software development intangibles that are being amortized over periods ranging from one year to 38 years. In-place lease intangibles, at cost are included in In-place lease intangible assets and other in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent intangibles are included in Below-market rent intangible liabilities, net in the consolidated financial statements.
Net lease intangibles recorded in connection with property acquisitions during the year ended December 31, 2025 are described in Note 5.
In connection with certain business combinations, we recorded goodwill as a result of consideration exceeding the fair values of the assets acquired and liabilities assumed (Note 2). The following table presents a reconciliation of our goodwill (in thousands):
| Goodwill | |||||
Balance at January 1, 2023 | $ | 1,037,412 | |||
| (61,737) | |||||
| Foreign currency translation adjustments | 2,614 | ||||
Balance at December 31, 2023 | 978,289 | ||||
| Foreign currency translation adjustments | (10,446) | ||||
Balance at December 31, 2024 | 967,843 | ||||
| Foreign currency translation adjustments | 19,228 | ||||
Balance at December 31, 2025 | $ | 987,071 | |||
Current accounting guidance requires that we test for the recoverability of goodwill at least annually, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. We performed our annual test for impairment in October 2025 and found no impairment indicated.
Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands):
| December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
| Finite-Lived Intangible Assets | |||||||||||||||||||||||||||||||||||
Internal-use software development costs | $ | 3,996 | $ | (1,578) | $ | 2,418 | $ | 2,778 | $ | (999) | $ | 1,779 | |||||||||||||||||||||||
| 3,996 | (1,578) | 2,418 | 2,778 | (999) | 1,779 | ||||||||||||||||||||||||||||||
| Lease Intangibles: | |||||||||||||||||||||||||||||||||||
| In-place lease | 2,316,097 | (993,737) | 1,322,360 | 2,157,163 | (938,574) | 1,218,589 | |||||||||||||||||||||||||||||
| Above-market rent | 668,707 | (498,138) | 170,569 | 665,495 | (481,355) | 184,140 | |||||||||||||||||||||||||||||
| 2,984,804 | (1,491,875) | 1,492,929 | 2,822,658 | (1,419,929) | 1,402,729 | ||||||||||||||||||||||||||||||
| Goodwill | |||||||||||||||||||||||||||||||||||
| Goodwill | 987,071 | — | 987,071 | 967,843 | — | 967,843 | |||||||||||||||||||||||||||||
| Total intangible assets | $ | 3,975,871 | $ | (1,493,453) | $ | 2,482,418 | $ | 3,793,279 | $ | (1,420,928) | $ | 2,372,351 | |||||||||||||||||||||||
| Finite-Lived Intangible Liabilities | |||||||||||||||||||||||||||||||||||
| Below-market rent | $ | (202,319) | $ | 98,264 | $ | (104,055) | $ | (197,971) | $ | 78,140 | $ | (119,831) | |||||||||||||||||||||||
| Total intangible liabilities | $ | (202,319) | $ | 98,264 | $ | (104,055) | $ | (197,971) | $ | 78,140 | $ | (119,831) | |||||||||||||||||||||||
During 2025, the U.S. dollar weakened against the euro, resulting in an increase of $45.0 million in the carrying value of our net intangible assets from December 31, 2024 to December 31, 2025. See Note 6 for a description of intangible assets and liabilities reclassified to net investments in sales-type leases during the year ended December 31, 2025.
Net amortization of intangibles, including the effect of foreign currency translation, was $174.7 million, $186.7 million, and $247.5 million for the years ended December 31, 2025, 2024, and 2023, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues and amortization of internal-use software development and in-place lease intangibles is included in Depreciation and amortization.
Based on the intangible assets and liabilities recorded at December 31, 2025, scheduled annual net amortization of intangibles for each of the next five calendar years and thereafter is as follows (in thousands):
| Years Ending December 31, | Net Decrease (Increase) in Lease Revenues | Increase to Amortization | Total | |||||||||||||||||
| 2026 | $ | 15,862 | $ | 137,206 | $ | 153,068 | ||||||||||||||
| 2027 | 14,564 | 125,231 | 139,795 | |||||||||||||||||
| 2028 | 12,950 | 114,466 | 127,416 | |||||||||||||||||
| 2029 | 12,466 | 104,714 | 117,180 | |||||||||||||||||
| 2030 | 11,818 | 98,106 | 109,924 | |||||||||||||||||
| Thereafter | (1,146) | 745,055 | 743,909 | |||||||||||||||||
| Total | $ | 66,514 | $ | 1,324,778 | $ | 1,391,292 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 9, 2024 | |
| 2022 | Feb 10, 2023 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.